Illinois Governor JB Pritzker plans to temporarily stop processing applications for tax breaks offered to data centers seeking to build in the state, according to a report by NBC News on Friday. The pause will begin July 1 and is part of an effort to develop new rules for how these facilities should operate.
Pritzker reportedly will share the plan Friday and will direct the Illinois Department of Commerce and Economic Opportunity to halt processing of applications to the tax incentive program. The governor called on state lawmakers earlier this year to suspend incentives for two years while conducting a comprehensive review of the impact centers are having on communities.
The move comes after lawmakers did not act on the proposal. The governor cannot unilaterally end the program but has control over how applications are processed, according to his office.
"Illinois has an opportunity to continue leading in technological innovation and economic growth, but we also have a responsibility to protect working families and local communities as the data center industry rapidly expands," Pritzker said in a statement.
Pritzker raised concerns about the speed at which data centers are being built and said the state needs to better understand their impact on consumer utility bills and water consumption.
The governor will call on the Legislature, labor groups, utility companies, local governments and industry leaders Friday to develop comprehensive reforms for data center development. The reforms include having data centers pay their fair share and protecting natural resources while ensuring a reliable energy grid. Pritzker is also calling for transparency so communities know ahead of time how much water and electricity the centers would consume.
Microsoft Corporation has multiple data center projects underway in Illinois, including a 350-acre campus in Cherry Valley and a $500 million development in Hoffman Estates. The company also acquired over 500 acres in Plano and is building a $123 million campus in Elk Grove Village.
Google, part of Alphabet Inc., signed an agreement to back a 400-megawatt carbon-capture natural gas plant in Decatur to power its new AI data center in Illinois.
Meta Platforms Inc. approved plans for a second data center expansion at its DeKalb campus and partnered with Constellation Energy to run its Illinois AI data center using nuclear power from the Clinton Clean Energy Center.
Digital Realty Trust Inc. is expanding its Chicago presence by adding a new building at 330 E. Cermak Road. Iron Mountain Inc. is developing a $75 million infrastructure project in Des Plaines.
source https://www.investing.com/news/stock-market-news/illinois-governor-to-pause-data-center-tax-breaks-amid-ai-concerns-4728984
